(800) 853-8808
info@frangroup.com

Levels of Franchising

Master Franchise Consulting – Types of Franchises – Pick the Right Level for Your Goals

Franchising is a business model that provides a specific plan for duplicating the original concept through a licensing agreement so that each independent operation is identical to the other even though each franchise is managed by different owners. This cookie-cutter approach gives future franchisees a ready-made business with a proven roadmap to operating a profitable business just about anywhere in the world.As a result, franchising is arguably the most successful business model ever created.

There are basically fourdifferent types of franchise licensing agreements:

Single unit franchise agreement:  With a single unit franchise agreement, the franchisor will grant a franchisee a license to operate one unit in a specific location. The franchisor will protect the operator from direct competition with other franchisees within a certain radius or specific postal codes, usually within few miles.

Multi-unit franchise agreement: A multi-unit franchise agreement allows the franchisee to open a certain number of franchise units within the protected territories or areas they select from available franchise locations.  This is a great option for those that have franchise operation experience or already own a single franchise unit and want to rapidly expand their business and income potential.

Area developer / Regional developer agreement: An Area Developer (AD) is someone in the unique position of controlling the development rights for a given area. This territory can be a major metropolitan area, an entire city, or even a whole State. The developer buys the rights to market and helps develop the territory for a Brand. By assisting with this growth, the AD can benefit financially from the initial fees and on-going monthly fees collected within the area, as well as, the territorial value appreciation as the Brand matures.

Master franchise territory agreement: Under the umbrella of a master franchise territory agreement, the franchisee obtains exclusive rights to develop, own and operate franchise units within entire geographic regions such as metropolitan areas, counties, states or even foreign countries.  The master franchise owner acts as a sub-franchisor and collects royalties for each franchise unit developed under the master franchise agreement while still maintaining all of the benefits of the original franchisor. One of the benefits of a master franchise agreement is the ability to offer either single unit or multi-unit franchise licenses for owners that will operate their franchise unit(s) under your master agreement.

Be Your Own Boss

When you form a business relationship with a franchisor to establish one or more individual franchise units and/or locations, you are agreeing to operate each unit as specified in the licensing agreement and franchise operations manual.  In order to ensure quality and consistency with their brand, each franchisor establishes their own qualification criteria.

We have more than 2,000 franchise opportunities currently available in just about any industry you can think of.  In fact, you are probably familiar with many of them already. So, if you’re ready to take the first step to own your own business and be your own boss then contact us today to learn about the exciting franchises for sale.